i did totally follow you on strikes though.. whats wrong with the outta the monies.. i was thinking about putting on like a 680 calender.. letting oct expire worthless and holding nov for the long shot through earnings.. or even selling the nov 700 or 710 once oct expires..
AAPL - OCT 19 '12 + NOV 16 '12 690 Call Calendar Spread at 13.35 or where i'm already short AAPL - OCT 19 '12 + NOV 16 '12 700 Call Calendar Spread for 12.05
oh noooooooooooooo.... hahahha thats cool i'm used to talking to myself anways.. ..glad i didn't chase MA 00/50/00 thing worked for a while .. <a target='_blank' title='ImageShack - Image And Video Hosting' href='http://imageshack.us/photo/my-images/5/27743506.png/'><img src='http://imageshack.us/a/img5/2661/27743506.png' border='0'/></a><br>Uploaded with <a target='_blank' href='http://imageshack.us'>ImageShack.us</a>
i'm going to move my calender up.. from 665 to 700 i'm out of this .. +SLD 1 AAPL - OCT 19 '12 + NOV 16 '12 665 Call Calendar Spread 14.30 USD SMART 15:47:20 1.45 null +SLD 1 AAPL OCT 19 '12 + (1) 630 + (1) 695 - (2) 665 Call Combo 12.70 USD SMART 15:48:19 2.27 null
IV_Trader, what do you mean by "a vola touch of 110" is it the increase in volatility in basic points? Thanks
IV's not around as much, so I'll answer and he can correct... he means that Oct19 vola will touch 110% on the day of the report. The idea is that vola must rally into the report, as no significant decay will be seen. If the straddle prem doesn't decay, vols must rise. It's a "free trade" on long vol. Since the straddle should remain above 3.00 into the report, any large move in the underlying in the interim is free gamma. No "loan" (paid in theta) on the trade.